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250 jobs saved after Bridgwater company goes into administration
5:07pm Tuesday 27th August 2013 in News
MORE than 250 jobs have been saved at a Bridgwater catering firm after it was bought out of administration.
Pro Serv Corporate Limited, based in Bristol Road, had been providing catering services to schools and corporate clients throughout the South-West for nearly a decade, but it went into administration on August 23.
Ian Walker and Chris Norman, both of Begbies Traynor’s Exeter office, were appointed joint administrators.
Mr Walker said: “Unfortunately, the company began to experience financial difficulties over the last 12 months as a result of increased competition within the industry.
“This led to reduced operating margins which, coupled with significant losses at certain of its sites, meant that cash flow problems started to occur and this eventually resulted in the appointment of administrators.”
However, 260 jobs were saved when Taylor Shaw, part of the Waterfall Group, a national catering company with offices in Warrington, Durham, Sheffield and Milton Keynes, agreed to buy Pro Serve’s principal business.
The deal is expected to be completed within days.
Mr Walker said: “We are delighted to have found such a reputable buyer for most of the business of Pro Serv, which should ensure the continuation of many of its 30 catering contracts and the preservation of employment for around 260 staff.”
Jim Lovett, group managing director of Taylor Shaw, said: “We have been seeking to expand within the South-West for some time and when we became aware that Pro Serv was in trouble, we registered our interest to enter into negotiations.
“While a national company with contracts and suppliers countrywide, the South-West was the only region in which Taylor Shaw did not have a strong foothold.
The acquisition of Pro Serv has changed that.
“Staff will make the transition with immediate effect and we will enter into discussion with existing suppliers and clients to answer any questions they may have, hopefully continuing and strengthening all existing relationships.”
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